New Jersey’s Medical Debt Relief Initiative Tops $1.1 Billion Forgiven for Over 776,000 New Jerseyans

TRENTON – Governor Phil Murphy today announced an additional approximately 629,000 New Jersey residents will see a combined $927 million in medical debt retired through the State’s partnership with Undue Medical Debt, bringing total debt forgiven to over $1.1 billion for 776,000 New Jerseyans since August 2024.

By leveraging approximately $5.8 million in American Rescue Plan funds from the State’s investment in medical debt abolishment, Undue has purchased this fourth round of medical debt from RWJBarnabas Health – the State’s largest integrated academic health system – and from the secondary debt market. Over half a million households will receive an Undue Medical Debt branded letter in the mail over the coming weeks informing them that some or all of their medical debt has been abolished.

“Nobody should have to choose between their health and their financial stability. My Administration has pursued lasting systemic reforms to put more affordable health care in reach for New Jersey families and better protect our residents from accumulating debt,” said Governor Murphy. “Meanwhile, our work with Undue Medical Debt has provided tangible relief to hundreds of thousands of New Jersey families, retiring over $1 billion in medical debt. I am grateful to our partners in this space, and I look forward to continuing our work to build a healthier, more affordable New Jersey.”

“Medical debt is a silent crisis affecting millions of families, exacerbating health disparities and preventing far too many people from seeking the care they need. Debt relief efforts are essential not only for financial recovery, but for the well-being of our communities,” said New Jersey Department of Health Commissioner Kaitlan Baston, MD, MSc, DFASAM. “Health care should never be dictated by someone’s ability to pay. By addressing medical debt, we empower individuals to focus on their health and future rather than the burden of financial insecurity. Today’s announcement is a massive win and a testament to the Murphy Administration’s commitment to making health care more affordable and accessible for New Jersey’s residents.”

“I’m very proud that we’ve helped the State and Governor Murphy reach this momentous milestone of over $1 billion of medical debt erased for New Jersey residents,” said Undue Medical Debt CEO and president Allison Sesso. “I also must thank RWJBarnabas Health for their partnership and all the providers that have stepped up to help us remove these unpayable burdens on families. I’m thrilled for the hundreds of thousands of people who will soon be receiving this good news in the mail.”

Medical debt abolishment builds on the Governor’s efforts to make health care more affordable and accessible for New Jersey families. Under the Governor’s leadership, the State has also advanced critical protections to safeguard New Jerseyans from falling into medical debt, including the prohibition of credit reporting for most medical debts. New Jersey is a leading state in consumer protection policies and supports for residents, being one of only five states in the nation that both prohibits medical debt reporting to credit agencies and has allocated funding to provide residents with direct medical debt relief.

These efforts are complemented by additional consumer-focused policies that advance prescription drug affordability, including caps on out-of-pocket costs for insulin and asthma inhalers; innovative reforms promoting transparency in the pharmaceutical supply chain; and necessary oversight of pharmaceutical benefits management companies.

There is no application process for medical debt relief. Undue purchases large, bundled portfolios of past-due medical debt belonging to those least able to pay for pennies or less on the dollar. Instead of trying to collect, Undue erases the debt.

Those who qualify for medical debt relief are either at or below 400% of the federal poverty line or have medical debts that equal 5% or more of their annual income. These are the only criteria for relief. This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief is source-based and cannot be requested, depending on community-minded providers like hospitals and secondary market partners like collection agencies who choose to engage and sell their qualifying medical debt.

Those benefiting from medical debt relief will receive an Undue branded letter in the mail. Learn more about Undue here.

Age: 50

Hometown: Tenafly

Occupation: Member of Congress

Personal or professional background: I’m a Jersey guy. I grew up in North Caldwell and went to West Essex High School. I worked for Presidents Clinton and Obama, at the U.S. Commission on Civil Rights, and Ford and Microsoft. In 2016, I ran for Congress, beat an anti-gay extremist, and became the first Democrat in 84 years to hold that seat. In Congress, I wrote, negotiated, and helped pass legislation that everyone said was impossible—the first commonsense gun safety bill in three decades, the largest investment to fight climate change in our history, and the Bipartisan Infrastructure Bill, which is helping Jersey fix our roads, bridges, mass transit, EV chargers, and build the Gateway Train Tunnel. As Governor, I will lower taxes, lower costs, and protect our Jersey Values.

What is your top issue this year? Jersey is too expensive and families are being priced out of this state we all love. That’s why I’m running as the “Lower Taxes, Lower Costs” Governor. My top priority is to make life more affordable so that folks can stay here when they graduate, raise a family here, buy a home here, and retire here. I’ll cut taxes and bring down the cost of living, including by fighting Trump’s tariffs that are raising prices and tanking retirement savings. I’ll stand up to Trump and protect our Jersey Values, including reproductive freedom, ensuring clean air and water, commonsense gun safety, and keeping our communities safe. I have a record of getting tough things done. I’ll do the same as Governor.

What are your specific proposals for making New Jersey more affordable? I’m running as the “Lower Taxes, Lower Costs” Governor who will lower utility bills and make Jersey more affordable. My expert-backed “Tax Cut Plan” cuts property taxes by nearly 15% for everyone, gives renters an annual tax rebate, lowers income taxes for middle-class families, includes a “Senior Bonus” tax break, and incentivizes people and jobs to come to Jersey—and it’s fully paid for. My “Lower Costs Plan for Jersey” will double the state Child Tax Credit and produce more clean and alternative energy to lower utility bills, and I’ll bring down the cost of housing, childcare, healthcare, and food—the biggest ticket items in a family’s budget. We need to stop nickel-and-diming Jersey families with outrageous fees, taxes, and costs.

Do you support the state law designed to increase the amount of affordable housing and if not, how would you make housing less costly for residents? A place to start is to cut property taxes by 15 percent and give renters a rental rebate. My “Tax Cut Plan” does both. Jersey is short more than 220,000 housing units and rents are up 33 percent in the last five years. We need to prioritize building more housing, and as Governor, I will. We should focus on building more housing that’s affordable near mass transit, and we should utilize abandoned office parks. I will speed up the development process by creating a One-Stop-Shop to cut red tape that’s holding up new construction. We also need to embrace new, innovative models of homeownership and financing to help younger families and seniors.

How would you manage potential federal funding cuts to social services, health care, education, and other areas, particularly in light of the state’s budget challenges? I will continue to fight against the Trump Administration’s War on Seniors and his attacks on Jersey. Governors are the last line of defense against Trump, and just like I’ve done in Congress, I’ll fight like hell to protect Medicaid, Medicare, and Social Security. I’m the only candidate with a plan to fix our state’s structural deficit, fully fund our pensions, Stay NJ, and other important programs, and lower taxes and costs for everyone. As Governor, I’ll appoint a “Clawback Czar” to help Jersey get every penny possible back from Washington—just like I’ve clawed back 357% more to Jersey families during my time in Congress. My “Stop Trump and Protect Our Jersey Values Plan” outlines how I’ll fight to protect Jersey families as Governor.

How would you manage the current and looming impacts of climate change on the state? Climate change is a huge challenge for our state—and I’m no stranger to taking on a challenge. I’ve clawed back millions to Jersey to cut down on air and water pollution and get PFAS, lead, and other forever chemicals out of our drinking water. I have a 97 percent rating from the League of Conservation Voters because I’ve always stood up for our environment. As Governor, I’ll invest in climate resiliency and electric vehicle chargers, prepare our towns for more intense storms and flooding, and protect our beaches, waterways, forests, and communities. I helped write, negotiate, and pass the Bipartisan Infrastructure Bill and the largest investment to fight climate change ever. I’ll bring that same record of getting things done to Trenton.

What actions, if any, should NJ be taking to respond to the Trump administration’s policies? I’ve been fighting Trump every day in Congress and I’ll do the same as Governor. I’m not afraid to get into the ring and go round after round until we win. Jersey needs a Governor who is tenacious and tough, who will fight Trump and anyone else when they come for our families, our rights, and our great state. I’ll be relentless when it comes to taking Trump and Musk on, and I’ll do anything to protect our seniors and families. Whether it’s lowering taxes and costs to fight his reckless tariffs and rising prices, protecting choice and LGBTQ+ rights, or standing up for Social Security, Medicare, and Medicaid, I’ll always fight to protect our Jersey Values.

What changes, if any, would you make to the state’s school funding system, and how would you pay for them? We have some of the best schools in the country and I want to make sure every student, no matter where you live, gets the best education possible. As Governor, I’ll fully fund Universal Pre-K and full-day kindergarten for every child in Jersey. I’ll work to fix the school funding formula so every school gets the resources they need, and I’ll fight Trump’s gutting of the Department of Education. I’m the only candidate with detailed, expert-backed plans to cut taxes and lower costs, including a 15% property tax cut and rebates for renters, that meet our pension obligations, fund our schools, tackle our structural deficit, and are fully paid for without cutting the important programs and services Jersey families and seniors rely on.

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Acting Governor Tahesha Way declared that New Jersey will enter a State of Emergency effective at 7:00 a.m. on Wednesday, April 23, 2025 in response to the active Jones Road Wildfire in the Greenwood Forest Wildlife Management Area near Lacey, Ocean, and Barnegat Townships in Ocean County. Executive Order No. 387 declares a State of Emergency for Ocean County. “Yesterday, our State Forest Fire Service informed us of a wildfire in Ocean Township, Ocean County. Due to its accelerated growth, with an estimated burn of 8,500 acres, threatening more than 1,000 structures, requiring the evacuation of residents in the area, and the loss of power to over 25,000 residents, I am declaring a State of Emergency for Ocean County,” said Acting Governor Way. “I encourage all residents in the County to continue to monitor the proper channels, and to use caution and follow all safety protocols.” The Acting Governor encourages New Jerseyans to visit the New Jersey Forest Fire Service’s website and social media pages for important wildfire updates and safety information. Residents should also monitor local forecasts, warnings, and watches.

Acting Governor Tahesha Way announced that the Federal Emergency Management Agency (FEMA) awarded New Jersey a Fire Management Assistance Grant (FMAG). This funding will directly support the Jones Road Wildfire response and recovery efforts in Ocean County. The Fire Management Assistance Grant Program is available to states, local, and tribal governments to mitigate, manage, and control fires on publicly or privately owned forests or grasslands, threatening such destruction as a major disaster. “The Jones Road Wildfire in Ocean County is estimated to have burned over 15,000 acres and continues to burn with 60 percent containment,” said Acting Governor Tahesha Way. “As our first responders attend to the fire, we are grateful to receive help from FEMA with the approval of the FMAG. This grant will ensure we are able to respond as quickly and capably as possible to reach full containment and recover in the aftermath of the fire.” “I’m thankful that FEMA has approved our FMAG request. This support is vital to help us respond to and recover quickly from the Jones Road Wildfire and will effectively help us protect lives, homes, and communities,” said New Jersey State Police Superintendent and State Director of Emergency Management Colonel Patrick J. Callahan . “The FMAG also helps equip our heroic firefighters and first responders working tirelessly on the front lines. I’m grateful for our whole community partnership that enhances our capabilities and resilience during critical events.”

Acting Governor Tahesha Way signed legislation requiring State-regulated health insurers to cover biomarker testing, putting this form of diagnostic testing in reach for more New Jerseyans. Biomarker testing analyzes an individual’s unique biological indicators to provide insights into their health status or risk of certain diseases like cancer. Biomarkers can inform certain treatment plans, making this form of testing a critical step to applying precision medicine and targeted therapies that can improve health outcomes and provide for better quality of life. “We are continuing to advance our mission to make high-quality health care more affordable and accessible in New Jersey. By eliminating barriers to accessing biomarker testing, we are making it easier for families in our state to access personalized treatment plans,” said Acting Governor Way. “For someone battling life-altering and potentially fatal diseases like cancer, having this testing covered by insurance could make a world of difference in their treatment plan.” Under the bill, state-regulated health insurance providers, Medicaid, and the SHBP and SEHBP are required to provide coverage for biomarker testing for the purposes of diagnosis, treatment, appropriate management, or ongoing monitoring of an individual’s disease or condition when the test is supported by medical and scientific evidence. “Biomarker precision medical testing helps guide health professionals with more detailed information to diagnose or provide targeted treatment options for diseases, which can lead to improved health outcomes,” said New Jersey Department of Banking and Insurance Commissioner Justin Zimmerman. “With this law, New Jersey is increasing accessibility and affordability of this tool that can open the door to more effective care.”

Governor Murphy Partners with Undue Medical Debt and RWJBarnabas Health on Fourth Round of Medical Debt Relief, Eliminating $927 Million in Debt for 629,000 New Jerseyans

Governor Phil Murphy announced an additional approximately 629,000 New Jersey residents will see a combined $927 million in medical debt retired through the State’s partnership with Undue Medical Debt, bringing total debt forgiven to over $1.1 billion for 776,000 New Jerseyans since August 2024.

By leveraging approximately $5.8 million in American Rescue Plan funds from the State’s investment in medical debt abolishment, Undue has purchased this fourth round of medical debt from RWJBarnabas Health – the State’s largest integrated academic health system – and from the secondary debt market. Over half a million households will receive an Undue Medical Debt branded letter in the mail over the coming weeks informing them that some or all of their medical debt has been abolished.

“Nobody should have to choose between their health and their financial stability. My Administration has pursued lasting systemic reforms to put more affordable health care in reach for New Jersey families and better protect our residents from accumulating debt,” said Governor Murphy. “Meanwhile, our work with Undue Medical Debt has provided tangible relief to hundreds of thousands of New Jersey families, retiring over $1 billion in medical debt. I am grateful to our partners in this space, and I look forward to continuing our work to build a healthier, more affordable New Jersey.”

“Medical debt is a silent crisis affecting millions of families, exacerbating health disparities and preventing far too many people from seeking the care they need. Debt relief efforts are essential not only for financial recovery, but for the well-being of our communities,” said New Jersey Department of Health Commissioner Kaitlan Baston, MD, MSc, DFASAM. “Health care should never be dictated by someone’s ability to pay. By addressing medical debt, we empower individuals to focus on their health and future rather than the burden of financial insecurity. Today’s announcement is a massive win and a testament to the Murphy Administration’s commitment to making health care more affordable and accessible for New Jersey’s residents.”

“I’m very proud that we’ve helped the State and Governor Murphy reach this momentous milestone of over $1 billion of medical debt erased for New Jersey residents,” said Undue Medical Debt CEO and president Allison Sesso. “I also must thank RWJBarnabas Health for their partnership and all the providers that have stepped up to help us remove these unpayable burdens on families. I’m thrilled for the hundreds of thousands of people who will soon be receiving this good news in the mail.”

Fiscal Year 2026 Budget Address

Tuesday, February 25, 2025

Remarks As Prepared For Delivery

Lieutenant Governor Way.

Senate President Scutari. Assembly Speaker Coughlin.

Majority Leaders Ruiz and Greenwald. Minority Leaders Bucco and DiMaio. Members of the 221st Legislature, with special thanks to the bipartisan escort committee that walked me into this chamber.

Chief Justice Rabner and Judge Grant.

Members of the Cabinet. Senior staff.

Former Governors McGreevey and Corzine.

First Lady Tammy Murphy and two of our four children, Josh and Sam.

Distinguished faith leaders, members of the clergy, veterans, our brothers and sisters in organized labor, special guests, friends.

And my fellow New Jerseyans.

It has been the highest honor of my life to serve as your Governor.

Over the past seven-plus years — with the help of everyone in this chamber — we have begun building a New Jersey that is stronger, fairer, and more prepared for the future.

But though we have come far in this journey, let me be absolutely clear: We have not reached the finish line yet.

Because today, at a time when working families have been pummeled by rising prices, and the noise of chaos and confusion in Washington is louder than ever, the reality is: the working people who keep our state moving cannot afford to slow down.

And neither can we.

Because we need to keep fighting — with every fiber of our being — for our children, workers, parents, senior citizens, and every New Jerseyan who is struggling to get by.

So, as I declared last month, during my State of the State Address: I’m not done yet. And we’re not done yet .

And as we join together, to run through the tape, over the final 329 days of our Administration, I am honored to present our budget proposal for the next fiscal year.

With this budget, we will continue making historic progress in meeting our sacred obligations to the people of New Jersey.

We will confront our state’s greatest challenges — both honestly and responsibly.

We will defend the fundamental rights and freedoms of every New Jerseyan, from voting rights to LGBTQ+ rights to reproductive rights to every right in between.

And, with our Administration’s final budget proposal, we will move forward in meeting our highest priority of all:

Delivering economic security and opportunity to every New Jerseyan.

And together, with the support of everyone in this chamber, we will leave our children a state that is better than we found it.

Now, to that last point, today, I also want to take the opportunity to spell out — in the clearest terms — the difference between fiscal responsibility and fiscal irresponsibility.

Because, for far too long, our state’s families had been failed by the reckless and irresponsible decisions made by previous generations of leaders, on both sides of the aisle.

And those years of failed leadership have come at a big cost for our families.

So, as I take this podium — for my final Budget Address — I am going to explain exactly what the consequences of those failures are for working New Jerseyans.

And, I am also going to explain how our Administration has addressed — and will continue to address — those failures and how the next Governor can build upon the progress we have made, together.

As always, we need to level with the people of New Jersey.

Because you don’t need to be a recovering banker to recognize that it costs a whole lot more to meet our obligations tomorrow than it does to face them head-on today.

And, as we all know well, right now, the single-biggest challenge facing the people of New Jersey is that the cost-of-living is way too high.

From the farms of Cumberland County to the streets of Jersey City, far too many New Jerseyans are living with deep uncertainty — and anxiety — about their economic future.

Whether it be the skyrocketing cost of eggs, or a housing market that is hotter than ever, our state’s working- and middle-class families are worried — on a fundamental level — about being able to make their future in the Garden State.

And given the global economic disruptions — like inflation — that have battered the American people over the past few years, it’s really no wonder that our working neighbors feel as if they have been forgotten by those of us in power.

So, to every New Jerseyan who shares these concerns, here is my message to you: Our Administration is going to spend every minute we have left fighting for you.

In every working family living paycheck-to-paycheck I see my own family.

I see my Mom and Dad, who worked themselves to the bone, every single day, to provide for our family.

Growing up, my parents earned just enough to get by and to ensure my siblings and I had a fair shot at a brighter future.

To me, that is the promise of the American Dream.

And it is the very same promise that our Administration has worked to make a reality for every family in New Jersey.

And, with our budget proposal, our Administration will continue delivering economic security and opportunity to every New Jerseyan by providing yet another round of record-high tax relief.

Over the past seven-plus years, and in partnership with Senate President Nick Scutari and Speaker of the General Assembly Craig Coughlin, we have delivered more property tax relief to the people of New Jersey than any Administration in history.

Just last year, the amount of property tax relief we provided to New Jerseyans — through the ANCHOR Program alone — was magnitudes higher than it was when I entered office.

And let me explain what this relief means in real terms.

Back in 2018, the average, eligible homeowner in New Jersey received $246 in property tax relief.

This year, that average tax relief payment will be over $1,500 — a more than 500% increase in just seven years.

And, in partnership with everyone in this chamber, we have also provided historic relief to our state’s renters by restoring — for the first time in a very long time — property tax relief for tenants all across New Jersey.

But, beyond property taxes, we have also introduced new forms of relief, especially for our state’s working parents.

One of those parents is with us today: Abigail Perez.

Abigail is a single parent, living in Union County with her four-year-old son. She also works as a Township Recreational Program Aide, a role through which she provides support to our state’s senior citizens every day.

Last year, Abigail was one of 237,000 parents who received, on average, more than $950 in direct relief through the new Child Tax Credit, which we created in 2022.

That is real relief for parents, like Abigail, so they can afford everything from new clothes to a crib.

And, on the topic of lowering costs for New Jersey’s working parents, today, I am proud to announce that our budget will introduce a new sales tax exemption for cribs and other critical baby supplies to make life more affordable for more families.

So, altogether, we are providing record-high relief to New Jerseyans up and down our state — from tenants, to working parents, to senior citizens.

And with our budget, we are going to provide even more relief to our state’s seniors through Speaker Craig Coughlin’s Stay NJ program.

This program will provide hundreds of millions of dollars in relief to seniors all across New Jersey, so they can afford to remain in their homes and stay close to their kids and grandkids.

And while all of this is important progress, let’s be honest: for many families, tax relief merely serves to offset the burden of rising costs.

Today, there are far too many New Jerseyans who are unable to save any money at the end of the month, which prevents them from investing in their family’s future.

For that reason, our Administration has always embraced a comprehensive approach to strengthening the economic security of every New Jerseyan.

And our budget will continue making historic investments to help our neighbors save more of what they earn so they can worry less about affording necessities, such as health care.

I have said it before, and I will say it again: in the wealthiest nation in the world, nobody should ever have to worry about affording life-saving health care.

And our budget will continue making health care more affordable for more families by providing more than $100 million to support Cover All Kids.

This program provides free health insurance to tens of thousands of children — so they can receive the care they need, when they need it.

And, even better — with our budget, we are going to lower costs, even further, for parents caring for a newborn.

Last year — as part of First Lady Tammy Murphy’s Nurture NJ Initiative — we launched Family Connects NJ, the nation’s most robust, free nurse home visitation program for new mothers and babies. No other state, in the nation, has a program like this.

And we have already provided thousands of in-home nurse visitations to families across our state, so we can catch complications early, and in the process, literally save lives.

And with our budget, we are going to invest many more millions into expanding Family Connects NJ, with the goal of helping every new parent receive in-home care, from a trained nurse, free of charge.

Taking this step is essential to ensuring that New Jersey remains the best place, anywhere in America, to raise a family.

And, as we work to retain that proud reputation, we are also moving forward in addressing one of the biggest drains on any family’s budget: the skyrocketing cost of housing.

Just last year — with the help of Senator Troy Singleton, Assemblywoman Yvonne Lopez, and many of you in this chamber — I signed the most important affordable housing law that New Jersey has seen in more than 40 years.

And this year, we are going to build upon that accomplishment by reforming New Jersey’s zoning and permitting laws, so we can make it easier to build new, affordable housing where it is needed most.

These legislative reforms are crucial to stabilizing the cost of housing in the years to come.

And, over the next year, our budget will help families save money on housing by, for instance, offering down payment assistance to first-generation homebuyers and building upon the tens of millions of dollars we’ve invested — through the Affordable Housing Trust Fund — into housing New Jerseyans up and down our state. From our elderly neighbors to our veterans.

With us today is Jim Sawn — who served our nation, in the Army, during the 1980s, and received numerous medals and ribbons for his courageous service.

Last year, Mr. Sawn moved into a new, affordable housing complex in Mountain Lakes, which was built — in part — through funding provided by the Department of Community Affairs.

We owe New Jerseyans like Mr. Sawn a debt of gratitude that we can never fully repay.

And, at bare minimum, we must ensure every veteran like him can keep a roof over their head, food on the table, and find a good-paying job to support their family.

One of our Administration’s proudest accomplishments — over the past seven-plus years — has been creating a new generation of jobs for New Jerseyans.

I have always believed that every worker — no matter their prior experience or educational background — is entitled to a good-paying job that can support their family.

And that is an ideal we have not only supported with our words — but with our actions.

In fact — under the leadership of the Department of Labor and Workforce Development Commissioner Rob Asaro-Angelo — by the end of this year, our Administration will have invested nearly $100 million into expanding apprenticeship, pre-apprenticeship, and other vocational programs all across New Jersey.

These programs are crucial to cultivating a new generation of trained professionals who can help grow our economy in the decades to come — from welders to mechanics to carpenters.

And, with us today is one of those professionals: Tina Pastoressa, who lives in Hamilton, New Jersey.

Back in 2022, Tina enrolled in the Carpenters’ Apprentice Ready Program, which helps aspiring carpenters — especially those from underrepresented backgrounds — to launch their careers.

And today, just a few years later, Tina now works in the field — every single day — as a member of Carpenters Local 254.

She even worked on the renovation of the rotunda, here in the State Capitol.

Workers like Tina are literally building the future of New Jersey.

And, it goes without saying: one of the most important investments we can make into New Jersey’s future is supporting our children.

That is exactly why our Administration has made monumental investments into strengthening our best-in-the-nation public education system.

With every budget we have introduced, we have provided record-high funding for our K-12 schools.

And with our final budget, we will once again fully fund New Jersey’s public education system.

And we are also going to reduce volatility in the school funding process by ensuring that no school district sees a steep reduction in state aid from one year to the next.

Altogether, our budget will provide the single-largest investment into New Jersey’s public schools in history.

And, with this funding, we are not merely investing in the success of our state’s students.

We are also helping every working parent save more of their money.

Because every additional dollar the state spends on public education is a dollar our families get to save in property taxes.

And our budget will help parents with young children save even more money by providing new funding to make free, full-day pre-K a reality in communities all across the Garden State.

Under our Administration, we have already created nearly 20,000 new classroom seats for our state’s youngest learners.

This is our North Star. Because every child should be positioned for academic success, especially at the earliest stages of life.

And now, in our continued efforts to support the academic success — and the mental well-being — of our students, our budget will help support a new priority: working with districts across New Jersey to ban cellphones from our K-12 schools.

We are going to provide several million dollars to a group of school districts that are interested in making the switch to phone-free schools, so our students can remain focused on their studies, and our educators don’t have to compete with TikTok for their attention.

We are joined, today, by a New Jerseyan who has been leading the charge for phone-free schools: Andrew Bell, the Superintendent of Woodbury City public schools, in Gloucester County.

Last year, Andrew and his colleagues decided to create a phone-free environment in Woodbury City Junior-Senior High School. And the benefits have been both swift and significant.

In Andrew’s words: “teachers are ecstatic to have control of the classrooms back.”

This is a win-win-win.

Getting cell phones out of schools helps educators, it helps parents, and most of all, it helps our kids.

So, from nurturing the growth and development of our students, to helping our senior citizens remain in their homes, our entire budget is centered around supporting New Jerseyans at every stage of life.

And, as part of this mission, our budget will also help strengthen the literal foundation on which every New Jerseyan relies: our infrastructure.

Since day one, our Administration has set out to build a world-class transportation system.

One that not only stands as the backbone of our nation’s economy but, even more importantly, gets the people of New Jersey where they need to go — safely and on time.

But one of the biggest challenges facing our transportation system is meeting the needs of a growing population.

Last year, New Jersey emerged as the fastest-growing state in the Northeast and one of the top-10 fastest growing states in the entire country.

And while that is fantastic news for our state’s economy, it also means that our public transit system is as busy as ever.

That is exactly why, over the past seven-plus years, our Administration has restored and dramatically increased funding for NJ TRANSIT.

Just last year, with the help of our federal partners, the amount of funding we provided to NJ TRANSIT for new capital projects was nearly double what it was when I first entered office.

This funding supports everything from building new bridges — like the Portal North Bridge, which will be a game-changer for tens of thousands of commuters — to rebuilding train stations and modernizing our fleet of rail cars and buses.

In fact, we have added more than 1,000 new buses to NJ TRANSIT’s ranks in the past seven-plus years alone.

And now, with our proposed budget, we are going to move forward in fully modernizing NJ TRANSIT by providing funding to begin replacing every single outdated bus and rail car that remains in the agency’s fleet.

Getting this done will make NJ TRANSIT more reliable and more accessible for every New Jerseyan.

And this investment, into strengthening the foundation of our transportation system, is just one example of how we are making it easier for New Jerseyans to live and work in our state.

Because when we talk about building a New Jersey that is brimming with opportunity, for all of our neighbors, we must always recognize our unique responsibility — as elected leaders — to strengthen New Jersey’s fiscal foundation, as well.

One of my single-highest priorities, as Governor, has been restoring trust in Trenton’s leadership.

And with every budget we have proposed, we have sought to make smart — and prudent — decisions today, so our taxpayers feel more economically secure tomorrow, and in the decades to come.

And our budget proposal for the next fiscal year is no different.

Thanks to the leadership of Treasurer Liz Muoio, and her entire team, we have crafted a proposal that meets all of our sacred obligations to the people of New Jersey — from providing record-high property tax relief to fully funding our public education system.

And, at the same time: we are also demonstrating restraint when it comes to spending taxpayer dollars.

In fact, our budget will largely cap all new discretionary spending.

Because if our state’s working families are being forced to make hard decisions when it comes to cutting their costs, we — in state government — should hold ourselves to the same standard.

And that is exactly what our Administration has tried to do since Day One.

While we are honored to be home to the finest public sector workforce of any state in America, we have fewer state workers today than when we arrived over seven years ago.

And, in that same spirit, I am also proud to report that our budget will include a more than $6.3 billion surplus, which will help guard us against unforeseen challenges, including the uncertainty that has swept over Washington.

When I entered office, we inherited a budget with a paltry $400 million surplus.

But, with our final budget proposal, we are going to make sure we leave the next Governor a surplus that is more than 15 times greater.

And, just as having a large surplus is important, so, too, is narrowing New Jersey’s structural deficit — which, put simply, is the gap between what we spend and what we take in.

Coming out of the pandemic — which clobbered every single state’s economy, including ours — we made a conscious decision to increase spending and investments in order to jump-start our economy.

The good news is: that strategy worked. Today, New Jersey’s economy is the envy of our region.

But now that the pandemic is behind us, we are fully committed to meaningfully shrinking the structural deficit.

Because, unlike Washington, which hasn’t had a balanced budget since the 1990s, we cannot spend beyond our state’s means indefinitely.

So, with this proposal, we are getting New Jersey’s budget back on the road toward balance, so we can uphold our obligation to keep our fiscal house in the best shape possible.

Because, as always, we owe it to the people we serve to lead honestly and responsibly.

And that is precisely why, over the past seven-plus years, our Administration has been laser-focused on meeting our obligations to the people of New Jersey while also restoring trust in Trenton.

In the past three years alone, New Jersey has received seven credit rating upgrades after a generation of downgrades.

But, even more importantly: we have demonstrated that our state’s leaders can meet our fiscal obligations without compromising on our moral obligations. And we are doing so once again.

Our budget will make the full payment into New Jersey’s pension system for the fifth year in a row, so that every worker who has served our state can enjoy the dignified retirement they have earned.

Now, I know the concept of paying into our pension system may seem obvious.

But it turns out, it’s not!

In fact, we are the first Administration — in 25 years — to restore full funding for New Jersey’s pension system.

For year after year, our state’s leaders abandoned this obligation because, simply put: it was the easy way out.

But the truth is: you can only kick the can down the road for so long.

Because sooner or later, you end up having to pay — and pay big.

And when it comes to our state, and — in particular — this budget, we now have to pay a multi-billion-dollar annual penalty for the irresponsible decisions made by previous generations.

What do I mean by that?

Well, if the state had made the full payment into our pension system, every year, over the past quarter-century, the cost of doing so, this year, would be roughly $1 billion.

But, because we were stuck with yesterday’s bar tab, it now costs us around $7 billion, every year, to make the full payment into our pension system.

And yes, that should make every taxpayer in New Jersey see red.

Over the past five budgets alone, we have paid, in total, a $30 billion penalty.

Think about that: $30 billion is enough money to waive nearly every New Jerseyan’s property taxes.

With $30 billion, you could build 13 MetLife Stadiums back-to-back.

Or provide free health care to every child in New Jersey.

That is $30 billion that should be going back into our hospitals, our schools, our public transit system.

But instead, we are literally paying the price for decades of short-term, sloppy, and selfish decision-making.

Well, we refuse to pass the buck any longer.

Because this is not about doing the right thing for the next election. It’s about doing the right thing for the next generation.

And to those of you out there, who I know are going to criticize the size of our budget proposal, I ask you this:

What would you cut?

Because I, for one, refuse to sell off our children’s future just to score a cheap headline.

I refuse to raise state taxes on the firefighter in Freehold, or the teacher in Teaneck.

I refuse to rip health care coverage away from our working families and children.

Or to starve NJ TRANSIT of the funding it needs to serve our commuters.

Or to defund Planned Parenthood, like the last Administration did.

And while, yes, every responsible budget, including this one, requires hard decisions — like scaling back programs that we would rather increase funding for — we can, and we must, make those decisions while also keeping our promises, whether it be making the full payment into our pension system or fully funding our public education system.

And I challenge the next Governor of New Jersey, no matter which party, to do their part to prioritize the future of our people instead of catering to the political interests of the present.

Because we work for the people of New Jersey.

And with this budget, and with every minute our Administration has left, we are going to continue working to strengthen our economy, lift up our families, and invest in our shared future.

Now, that last point is especially important, at this very moment, when many of our neighbors are worried about what the next few years may hold.

And they are not just worried about their economic future.

They are also worried about what is unfolding in our nation’s capital.

So folks, please allow me to step back for just a minute to acknowledge: these are not normal times.

I think it’s safe to say that we are facing more uncertainty — at the federal level — than at any other point in modern history.

And this uncertainty has a direct impact on all of us, and most importantly, the people of New Jersey.

We cannot negotiate this budget in a bubble.

And while I sincerely hope that the situation in Washington settles down, and that we — in turn — have a normal, healthy budget season over the next few months, that is by no means a guarantee.

There is a distinct possibility that we will, instead, need to pursue a “break the glass” strategy.

What that looks like, we cannot yet say. But we must acknowledge — and adapt to — this new reality.

Now, as I said last month: I have every intention of working — in good faith — with the Trump Administration to better the lives of the people we serve.

But, just as importantly, if this Administration tries to attack our most vulnerable neighbors: I will never back down from defending their rights and freedoms.

I will never back down from defending the members of our LGBTQ+ community — because their identities are not up for debate.

I will never back down from defending civil rights — or the rights of educators to teach the full truth of our history.

I will never back down from defending our immigrant families.

And by the way: I will also never back down from defending our police officers — like South River native Brian Sicknick — instead of pardoning the violent mob that assaulted them.

And I will certainly never back down from defending women — and protecting their access to reproductive health care, and especially, their right to an abortion.

Those folks in Washington can try and push their anti-choice agenda on us.

But as long as I am Governor: they will fail.

And with our budget, we are going to make the largest investment into protecting reproductive rights in our state’s history by fully funding women’s health care.

Since my first budget, we have quadrupled funding for reproductive health care services.

And our budget will build upon this progress by launching a new OB-GYN incentive program.

With this program, we are going to attract doctors and medical professionals from across the nation to come and join us in the Garden State.

Why?

Because, like every state in the nation, New Jersey is facing a looming shortage of reproductive health care providers.

And, with this investment, New Jersey will get ahead of that challenge by creating a new pipeline for these professionals.

But let me be clear: this is also about defending our New Jersey values.

Because if these health care heroes are going to be targeted by politicians elsewhere, we will always stand up for them and their ability to provide care.

My priority is ensuring that every woman can access the best possible health care, when they need it. Period.

And reproductive rights is just one of the fundamental rights that our budget will help protect.

We are also going to protect every New Jerseyan’s fundamental right to safety by funding programs like ARRIVE Together and other initiatives that bring together members of law enforcement, health care professionals, and local leaders, so they can work hand-in-hand to keep our communities safe from threats like guns and violent crimes.

In recent years, these investments have helped save a historic number of lives from gun violence.

And now, our budget will continue supporting programs that help save lives from public safety threats as well as public health threats, like the disease of addiction.

Since 2022, as part of a series of groundbreaking legal settlements, New Jersey has received over $1 billion from the bad actor companies that fueled the opioid crisis.

And last year, we invested over $120 million of those settlement payments into treating substance use disorders.

And this strategy — of supporting our neighbors struggling with addiction, rather than throwing them behind bars — is working.

In fact, 2024 marked the second year in a row in which drug-related deaths in New Jersey have declined.

But we are far from declaring victory. Because any precious life lost to opioids is one too many.

That is why our budget will continue funding programs that help New Jerseyans struggling with addiction find their path to recovery.

And, in our ongoing efforts to protect the fundamental rights of every New Jerseyan, our budget will also help defend our most fundamental right as Americans: the right to vote.

Over the next year, we are going to work alongside Lieutenant Governor and Secretary of State Tahesha Way to continue protecting and expanding voting rights, with a particular focus on youth voting rights.

Our budget will provide grants to municipal leaders across New Jersey to create new opportunities for 16- and 17-year-olds to vote in local school board elections, just as they are already doing in our state’s largest city, Newark.

Over the past year, I have been proud to help lead the charge for youth voting rights.

Because young Americans are the future of our country.

And, in a world as complicated as ours, they deserve the right to help shape that future.

And of course, that same ideal applies to every New Jerseyan, whether they are a high school student in Camden, a retiree in Cape May, or an immigrant small business owner in Cranford.

The fact is: We all have a role to play in building a better future for New Jersey.

And rather than succumbing to the politics of division and fear, we consider it an honor that generations of immigrants have chosen to pursue their American Dream, here in the Garden State.

And embracing New Jersey’s long-standing reputation — as a melting pot state — is not merely about living up to our values.

Simply put: it is also a winning economic strategy.

Today, immigrant business owners operate nearly half of all of our state’s Main Street businesses, and they employ tens of thousands of New Jerseyans.

One of those business owners is Albeiro Orozco, who is here with us today, along with his daughter, Kimberly.

35 years ago, Albeiro left Colombia to pursue his American Dream in Elizabeth, New Jersey, where he opened his first business: Brisas Restaurant.

But soon enough, his homemade empanadas — which are based on a secret, family recipe — became a hit.

And today, decades later, the Orozco family’s empanadas are sold all across the country.

They are even the official empanada of the Red Bulls!

There are thousands of New Jerseyans — like Albeiro and Kimberly — who contribute to our economy, and our shared future, every single day.

And with our budget, we are going to ensure that New Jersey remains the State of Opportunity — for entrepreneurs and innovators from around the world — by doubling funding for the Office of New Americans.

This office — which is part of the Department of Human Services — offers educational programming, employment services, and other resources to help new Americans find their footing in the Garden State, so they can help grow our economy, just like Albeiro.

We all benefit when workers and entrepreneurs — of all backgrounds — are given the chance to chase their dreams.

Because this is not about giving any individual group an unfair advantage.

It is about leveling the playing field, so every New Jerseyan has a fair shot at a brighter future.

Over the past seven-plus years, we have taken tremendous strides in building a stronger and fairer economy for New Jerseyans of all backgrounds, especially the members of our Black and Latino communities.

In fact, since 2018, the number of Black-owned businesses in our state has nearly doubled. And we have seen more than 5,000 new Hispanic-owned businesses open their doors.

And, again — this is real, meaningful progress that benefits every New Jerseyan.

Because, with the help of each one of these businesses, we have built the strongest economy in our entire region.

And that growth has enabled us to reach a historic milestone.

As of last year, there are more people employed in New Jersey than ever before and there are more businesses in operation than ever before.

And now, it is incumbent on all of us — as elected leaders — to seize on this economic momentum and create a new generation of economic opportunities for everyone.

Now more than ever, we need to position New Jersey’s students, workers, and innovators to outcompete anyone on the planet.

And that is precisely why one of the hallmarks of our Administration has been restoring New Jersey’s reputation as a bedrock for revolutionary innovation.

Under the leadership of the New Jersey Economic Development Authority’s CEO, Tim Sullivan, and his entire team, we have launched a suite of programs that are putting the workers of New Jersey at the forefront of tomorrow’s economy.

And altogether, we have secured more than $250 million in funding from our partners in the private sector to launch ten strategic innovation centers in a number of emerging industries, including biotech, fintech, generative AI, and more.

The impacts are many, but especially in igniting our start-up culture.

And remember, all it takes is one Microsoft or one Apple to completely change the game for our state’s economy.

And though these investments will take years to bear fruit, the truth is, we have already seen ample evidence that our strategy — for reviving New Jersey’s innovation economy — is paying off in a big way.

Consider the ascent of our adult-use cannabis industry, which simply did not exist — at least legally — before I entered office.

Just last year, our adult-use cannabis market surpassed $1 billion in sales.

And the tax revenue we have generated from this sector is providing funding, in part, to support violence intervention programs across our state.

In other words: in just five years, cannabis has gone from destroying lives — in the form of excessive criminal sentences — to helping save lives.

And by way: this simply would not have been possible without the leadership of Senate President Nick Scutari.

And we are joined, today, by one entrepreneur who has helped cultivate our adult-use cannabis industry from the ground up: Tahir Johnson, the Owner and Founder of Simply Pure, a dispensary located right here in Trenton.

Today, Tahir employs a number of New Jerseyans who — like himself — were unjustly targeted in the War on Drugs.

And Tahir’s story — and the story of this industry, more broadly — is a testament to our success in building a stronger and fairer New Jersey.

That success is also reflected in the fact that, in recent years, New Jersey has re-emerged as a global leader in film and television production.

And the resurgence of this industry has been both fast and astronomic.

Back in 2017, filmmaking and television production in New Jersey generated $67 million in economic activity.

Now, that may sound good, but just six years later — in 2023 — this industry had grown more than ten times, generating more than $700 million in economic activity for our state. And since then, that number has only grown.

Just last summer, New Jersey outperformed our biggest domestic competitors, like California and Georgia. And we are now entering 2025 as a top, global destination for filmmaking and television production.

You can even see our imprint on some of the most popular movies and TV shows of the last year — like the Bob Dylan biopic A Complete Unknown and the Apple TV series Severance.

And during this same period, New Jersey has also emerged as a global leader — and innovator — in the clean energy industries that will power our future.

Just last month, the Board of Public Utilities — led by its President Christine Guhl-Sadovy — announced that we have doubled our state’s solar energy output since 2017 and that we have now installed enough solar panels to power 700,000 households with clean, affordable energy.

And this month, we are taking a new step forward in accelerating New Jersey’s clean energy transition — at no additional cost to our taxpayers.

How can that be?

Well, back in 2020, New Jersey rejoined the Regional Greenhouse Gas Initiative. And over the past five years, as a member of RGGI, we have received more than $800 million from our nation’s biggest power plants and polluters.

And now — in February alone — we are investing $135 million of that revenue into making it easier for our state’s businesses and local governments to expand their fleets of electric vehicles.

With each and every investment, like these, into New Jersey’s clean energy future, we are not only meeting our responsibility to combat climate change.

We are also creating new, good-paying job opportunities for our workers.

And with our budget, we are going to apply this same strategy — of diversifying our state’s economy — to super-charging our leadership in advanced manufacturing.

In pursuit of this goal, I look forward to working with our bipartisan legislative partners — in particular, Senators Linda Greenstein and Michael Testa — to enact a new tax credit that will incent companies around the globe, especially those facing the risk of new tariffs, to manufacture next-generation products — like cutting-edge pharmaceuticals or renewable energy components, like fuel cells — right here in the Garden State.

So, the bottom line is, from advanced manufacturing and generative AI, to clean energy and adult-use cannabis, to filmmaking and fintech, we are building the New Jersey, not just of 2025, but of 2035 — and beyond.

We are paving the way for a new era of economic opportunities that will support our families for generations to come.

And in so doing, we are living up to our most sacred responsibility of all: Leaving our children a state that is better than we found it.

Though the budget I present to you today is the final budget of our Administration, it is one that reflects our ongoing — and unrelenting — commitment to building a state that is stronger, fairer, and more prepared for the future.

A state where every child is guaranteed access to every resource they need to thrive — from our world-class health care system to the very best public schools in the nation.

A state where every worker can find their place in the economies of tomorrow — and every entrepreneur is empowered to change the world for the better.

A state where every senior citizen is entitled to a dignified retirement — and every working family has the opportunity to live out their own American Dream.

And a state that rejects the politics of division — and, instead, draws strength from diversity.

Now, we all know there is uncertainty in our midst.

But even so, I believe New Jersey’s future has never been brighter.

And it is not just because we have the strongest economy in our region — though we do.

Or that we are home to the most dynamic and inclusive innovation ecosystem in the nation — though we are.

No, I am optimistic about New Jersey’s future because of the people of New Jersey.

Our talent. Our ingenuity. Our diversity.

And our unwavering devotion to our shared values.

And during the final year of our Administration, we are going to spend every minute we have left fighting for the people we serve.

We are going to continue delivering economic security and opportunity to every family, in every corner of the Garden State.

And above all, we are going to transform our dreams for New Jersey’s future into a reality.

Because, to quote the words of the legendary Toni Morrison — whose name is emblazoned on Princeton University’s “Morrison Hall” — we all bear a responsibility to “dream the world as it ought to be.”

And if I have learned one lesson, during my seven-plus years as Governor, it is that we can lead our state responsibly, and pragmatically, while never letting go of our willingness to dream.

Because every decision we make in this building — no matter how small — must always be rooted in our commitment to building a brighter future for the next generation of New Jerseyans.

And as I present my final budget, as Governor, I want to tell you about my dream for New Jersey’s future.

It is a future that will begin next year, when millions of soccer fanatics — from around the globe — will be drawn to our region to watch the world’s greatest game, on the world’s biggest stage, with the 2026 FIFA World Cup Final at MetLife Stadium.

And each one of those visitors will see — for themselves — that New Jersey is the state where big ideas come to life.

But that will just be the start.

Because, ten years from now, I see a future where one of our young innovators will follow in the footsteps of Edison or Einstein to discover new, life-saving medical treatments, or new solutions for combating climate change.

And that young woman — along with all of our state’s emerging visionaries — will show the world, once again, that New Jersey is the state where big ideas come to life.

But, more than anything, I see a future, decades from now, in which New Jersey is revered as the small state that changed our entire world forever — and for the better.

And every aspect of the budget I present to you today has been crafted to make our collective dreams for New Jersey a reality.

From meeting our sacred obligations to the people we serve.

To facing our challenges honestly and responsibly.

To strengthening the economic security of every New Jerseyan.

Together, we are going to write our state’s greatest chapter yet.

And we will leave our children a state that is better than we found it.

Thank you all so much.

May God bless you and your families. And may God continue to bless the great State of New Jersey and the United States of America.

Credit: (valelopardo from Pixabay)

A decade ago, New Jersey allocated roughly $850 million to support hospitals in its annual state budget and $11.4 billion for Medicaid, legislative records show. Much of these costs were covered by the federal government, whose share of Medicaid spending was on an upswing, growing by more than $1 billion annually over several years.

Flash forward to 2025, New Jersey’s current budget booked just over $700 million for hospitals, while Medicaid – the federal and state funded health insurance for low-income Americans – nearly doubled to $21.3 billion. But the federal contribution to Medicaid has been shrinking, budget analyses show, with $12.2 billion coming from Washington, an 11% decline from the budget year that ended in June 2024.

Medicaid enrollment is also declining and New Jersey’s program, NJ Family Care, now covers roughly 1.9 million people who are poor, disabled or living in nursing homes. But costs continue to grow, according to experts with the non-partisan Office of Legislative Services, who predicted Medicaid spending will increase 2.7% over twelve months. If enrollment had remained stable, experts estimated cost growth of more than 13%.

This comes as federal funding for Medicaid and other social service programs is under attack by Republicans in Congress, who are seeking to slice billions from existing programs to pay for tax cuts that are a priority for President Donald Trump. The result could mean up to $5.2 billion less from the federal government to pay Medicaid claims next year, according to state modeling obtained by NJ Spotlight News, plus a loss of $4.2 billion used to support hospitals and nursing homes. Proposed changes to eligibility rules could also leave as many as 700,000 New Jerseyans without Medicaid coverage, the state found.

“This is something that we really ought to be afraid of,” Assembly Speaker Craig Coughlin (D-Middlesex) said last week at an event to highlight the dangerous impact of the potential cuts.

“We don’t have an extra $12 billion dollars lying around. That’s an unachievable number,” Coughlin said, referring to the current federal share for Medicaid. “We can’t hope to find a way to replace that at the state level. It’s just not there.”

In New Jersey, Medicaid pays 60% of the costs for the people living in nursing homes, for nearly one-third of the births and for one in four hospital patients. Cuts to the program would impact health care providers and patients, advocates warn. “The far-reaching proposed cuts would be catastrophic for continuity of care for infants, children, seniors and families. It’s an access-to-care crisis in the making,” Cathy Bennett, president and CEO of the New Jersey Hospital Association, told NJ Spotlight News in an email.

On Tuesday Gov. Phil Murphy, a Democrat at the end of his second term, is scheduled to outline his spending plan for fiscal year 2026, which begins in July. Murphy’s office declined to comment, but the governor has said money is tight and last fall called for state agencies to trim spending and freeze hiring. In an interview with NorthJersey.com, Murphy said 15% of the state’s workforce is funded through the federal government.

In an op-ed previewing the budget for NJ Spotlight News, state treasurer Elizabeth Maher Muoio said Murphy remains committed to the “guiding principles” he has held all along, including improving the state’s fiscal health and making it more affordable. “These investments do come with a cost,” she wrote.

The state’s nearly $57 billion spending plan for the current fiscal year, which runs through June 30, includes a structural gap between projected annual revenues and expenditures that Murphy and lawmakers are plugging with more than $2 billion from surplus to maintain balance on paper, as required by the state constitution.

Murphy underscored his commitment to health care in general on Thursday, when the state Department of Banking and Insurance announced record enrollment in New Jersey’s health insurance marketplace, “Get Covered New Jersey.” More than 513,000 residents signed up for marketplace, or Obamacare exchange policies this year, nearly 200,000 of them new, a 30% increase over last year’s enrollment period, the department said.

“From the outset of my Administration, we have led with the principle that health care is a right, not a privilege, and the steps that we have taken underscore that commitment. Recognizing that affordability is central to access, New Jersey established Get Covered New Jersey with State subsidies on top of the federal financial help offered to lower monthly premiums. Hundreds of thousands more New Jerseyans now have health insurance, and they are paying less for it,” Murphy said in a statement.

The state opened its Get Covered marketplace, or Obamacare exchange, in 2020. Murphy called for providing $200 million in state subsidies to help people cover the premium payments, a decision that he framed as defense against Republican efforts reform or end the program, using funding from a new tax on health plans. The fund is expected to provide $190 million in subsidies this fiscal year, according to a legislative analysis. The federal government provides separate subsidies for these marketplace plans – which don’t flow through the state budget – but that money is also the target of GOP spending hawks.

New Jersey’s annual budget funds health care services in a range of way, including funneling federal dollars to address specific issues like HIV/AIDS, maternal health and veterans’ care. It commits millions in state funds to help elderly and disabled people buy medications, expand the health care workforce and provide kids with health insurance, regardless of their income or immigration status.

The state’s biggest health-related expenses involve programs like Get Covered, hospital aid and Medicaid, which at $21 billion comprises more than one-third of the total budget. Hospital aid – all allocated by formula – includes charity care, through which the state reimburses some of the cost hospitals incur treating patients without insurance as required by law, plus funding for quality improvement and money for graduate medical education, which pays hospitals to train doctors.

Funding for these programs is connected, in some ways. The Affordable Care Act, also known as Obamacare, drastically expanded access to insurance nationwide and more than 500,000 New Jersey residents gained coverage through Medicaid or the Obamacare marketplace. That led to declines in charity care costs, from $650 million in 2015, to $342 million in 2024. Funding for graduate training has also grown, while quality improvement support has remained fairly level.

In the current state budget, Murphy and lawmakers further trimmed a portion of hospital aid, known as charity care, – to just $137 million – by shifting a portion of the burden to Medicaid, which receives a higher federal match. State spending on charity care is a 1:1 match for federal reimbursements, while Medicaid is closer to 1:3. State officials said the reform – questioned by some lawmakers and advocates – would trigger an extra $300 million from federal sources, possibly more.

New Jersey’s Medicaid expenses were on the rise before Trump took office a second time and called on Republicans to make cuts. During the COVID-19 pandemic the federal government increased what it was paying states for Medicaid patients, a bonus that ended in 2024, requiring the state to add nearly $140 million more to the program than it had the previous year, according to the legislative analysis. Higher payments to the five managed care companies that provide Medicaid plans also increased state costs by another $139 million, it shows.

Enrollment in Medicaid had declined in the last year or two after the federal government called on states to review everyone’s eligibility requirements, a process that had been purposely stalled during the pandemic. But, as Baby Boomers age, the number of Medicaid members in costly long-term care is growing – estimated to expand by 3.7% this year – forcing the state to invest an extra $134 million for their care in 2025, according to the analysis. And state laws increasing wages for low-income workers have also impacted the program, adding at least $16.5 million to the state’s Medicaid tab this year.